RBI's Surplus to Government Can Change the Whole Math: Target
By Nupur Acharya
(Bloomberg) -- Current calculation of government receiving about 1.5 trillion rupees to 3.6 trillion rupees of funds from the central bank can quickly help stabilize the short term pain by helping out the farmers and supporting the state-run banks, says Sameer Kalra, founder and president research at Mumbai-based Target Investing.
“The question lies between economics and politics,” he says Rating agencies have cautioned against using RBI’s surplus funds Investors had factored in a rate increase by U.S. Fed; indication of two hikes and the stance of sticking to the path came as a surprise “As the market had run up too quickly, a small disappointment too has a large impact, some of it we might see right now and early January,” he says
“Positive cheer” of govt stimulus to overtake U.S. Fed worries in short term, at least for another week, before seasonal profit booking by foreign investors come in by early January .Market can add another 200-300 points in the interim
NSE Nifty 50 Index down 0.5% at 10,918.25; S&P BSE Sensex -0.4%
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